Trader Puts a Floor Under Williams (WMB)

Shares of The Williams Companies (WMB) are trading higher on the session by 1.36%, trading at $34.91. The stock has been moving largely higher over the past four months, though it is currently testing the 50-day moving average support level.

One trader is taking advantage of the recent dip in WMB to sell an awful lot of downside puts. A short while ago the November $32.00 put was sold 24,458 times, on the bid, for $0.41. Given the current open interest at 9,218 contracts, this is clearly new positioning.

The trade has pushed overall put volume to 8.9x normal volume with 29,177 contracts traded.

30-day implied vol is dropping 1.5% today to 35.62%; 10-day historical vol remains at 25.19%. At $0.41, the Nov $32 puts were sold at 39% vol.

The Williams Companies, Inc. is an energy infrastructure company focused on connecting North America's hydrocarbon resource plays to markets for natural gas, natural gas liquids (NGLs), and olefins. 

About Michael Zerinskas

Originally from Chicago, Michael J. Zerinskas began his career as an intern for a small high-frequency trading firm based at the CME; he then moved on to become Chief Options Strategist at Benzinga.com. Michael is now Unusual Activity Editor at The Options Insider, specializing in VIX, volatility, and flagging unusual activity.